Tightening the belt: Strong external competition has slimmed down industry profit margins

Obesity is one of the leading causes of illness and premature death in Australia. As a result, many Australians are seeking ways to manage their weight, including through operators in the Weight Loss Services industry. Australians are expected to spend $641.4 million on weight loss counselling services and related low-calorie foods and dietary supplements in 2017-18. This is up 0.2% from the previous year. Overall, industry revenue is expected to grow by an annualised 1.2% over the five years through 2017-18. This relatively modest growth is largely due to the strong competition that industry operators face from both internal and external sources...read more.

Industry Statistics & Market Size
Revenue
$641m
Annual Growth 13-18
1.2%
Forecast Growth 18-23
Profit
Employment
2,834
Businesses
515

Industry Threats & Opportunities

  • Australians are seeking new, convenient and more effective ways to lose weight
  • Industry firms have been expanding their weight loss products and services to boost demand
  • Industry innovation and diversification are forecast to lift profit margins
  • Industry Report - Starting a New Business Chapter

    The Weight Loss Services industry exhibits moderate barriers to entry. However, as the industry becomes more integrated and more competitive, barriers to industry for entrants grow more prohibitive. While costs involved in the more traditional counselling services sector have historically been moderate, companies now offer services and products across a variety of industry segments. The result is that clients are faced with more appealing offerings from larger players, forcing new companies to compete on price and provide a differentiated service. Furthermore, the growing level of integration is itself a cost barrier, as new companies are faced with the prospect of developing new foods, drinks and supplements, alongside offering personal counselling services. Whi...purchase to read more.

    Additional Insights for the Weight Loss Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Weight Loss Services Industry are

  • Market research and understanding
  • Establishment of brand names
  • Development of a symbiotic relationship with another industry
  • IBISWorld analysts also discuss how external factors such as Health consciousness and Levels of obesity in the Weight Loss Services industry impact industry performance..

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    What's in this report

    What is the Weight Loss Services Industry?

    Weight loss providers include any company offering goods or services specifically promoted as a weight loss solution. Apart from traditional weight loss advice and counselling services, companies in the industry also offer foods and beverages targeted at those wishing to lose weight. The industry does not include gyms, personal trainers and other exercise-oriented companies.

    Industry Products
  • Individual weight-loss counselling services
  • Group weight-loss counselling services
  • Fresh and frozen diet meals
  • Diet shakes, bars, powders and supplements
  • Other products and services
  • Industry Activities
  • Weight loss centre operation (non-medical)
  • Weight loss counselling services
  • Provision of low-calorie foods and beverages
  • Sale of products and supplements to assist with weight loss
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Health consciousness
  • Levels of obesity
  • Demand from gyms and fitness centres
  • Real household discretionary income
  • Consumer sentiment index

  • Current Performance
  • Fierce competition
  • New strategies
  • Tough male market
  • Chart: Revenue Growth

  • Industry Outlook
  • Weight loss trends
  • New products and markets
  • Table: Weight Loss Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Weight Loss Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Newspaper and Book Retailing
  • Supermarkets and Grocery Stores
  • Consumers

  • Key Selling Industries
  • Babysitting and Other Personal Services
  • Health Services
  • Organic Farming
  • Specialist Medical Services
  • Wholesale Trade

  • Products & Services
  • Individual weight-loss counselling services
  • Fresh and frozen diet meals
  • Diet shakes, bars, powders and supplements
  • Group weight-loss counselling services
  • Other products and services
  • Chart: Weight Loss Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Females aged 30 to 45
  • Females aged 46 to 64
  • Males aged 15 to 45
  • Females aged 15 to 29
  • Females aged over 65
  • Males aged over 46
  • Chart: Major Market Segmentation for the Weight Loss Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Weight Loss Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Weight Loss Services Industry

  • Industry Globalization
    Matchlow Pty Ltd, Jenny Craig Weight Loss Centres Pty Limited,
  • Table: Matchlow Pty Ltd - financial performance
  • Table: Jenny Craig Weight Loss Centres Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Weight Loss Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Weight Loss Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    (Bmi) Body Mass Index
  • A measure of body mass, which is based on a person's weight and height and is used to estimate a healthy body weight.
  • Schedule 3
  • A pharmacist-only drug. These drugs do not require a prescription to be purchased, but can only be sold at pharmacies.
  • Schedule 4
  • A prescription-only drug. Drugs classified as S4 may only be purchased with a prescription from a medical professional.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Weight Loss Services market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Weight Loss Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Weight Loss Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Weight Loss Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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